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HomeMy WebLinkAboutOES 06-09REPORT TO EXECUTIVE COMMITTEE PICKERING Report Number: OES 06-09 Date: January 12, 2009 From: Everett Buntsma Director, Operations & Emergency Services Subject: Pickering Sports Medicine & Wellness Centre - Renewal Lease Agreement - File: A-1440 Recommendation: 1. That Report OES 06-09 of the Director, Operations & Emergency Services be received; 2. That the Mayor and the Clerk be authorized to execute a renewal lease agreement to which the Pickering Sports Medicine & Wellness Centre will be permitted to continue to operate a Wellness Centre and Wellness Spa at the Pickering Recreation Complex from January 1, 2009 to December 31, 2013, that is in the form and substance acceptable to the Director, Operations & Emergency Services and the Chief Administrative Officer. Executive Summary: The Pickering Sports Medicine & Wellness Centre have an existing lease agreement to operate a Wellness Centre and Wellness Spa at the Pickering Recreation Complex. The Pickering Sports Medicine & Wellness Centre have requested to renew this agreement for a further five years. The Operations & Emergency Services Department recommends that a renewal agreement be initiated with the Pickering Sports Medicine & Wellness Centre. Financial Implications: 2009 12 months @ $2,400 per month $ 28,800 2010 12 months @ $2,400 per month $ 28,800 2011 12 months @ $2,700 per month $ 32,400 2012 12 months @ $2,700 per month $ 32,400 2013 12 months @ $2,700 per month 32,400 $154,800 Report OES 06-09 January 12, 2009 Subject: Pickering Sports Medicine & Wellness Centre Page 2 - Renewal Lease Agreement Sustainability Implications: The quality care and health services provided by the Pickering Sports Medicine & Wellness Centre enhance the existing Pickering Recreation Complex and are consistent with the City's mandate to encourage the development of active, healthy lifestyles. Background: On May 5, 2003, Council enacted By-law #6130/03 to authorize the execution of an amending lease agreement with the Pickering Sports Medicine & Wellness Centre to lease space at the Pickering Recreation Complex for the operation of a Wellness Centre and Wellness Spa. The Pickering Sports Medicine & Wellness Centre is currently operating as a sports medicine out-patient clinic with the services of Physiotherapy, Massage Therapy and visiting Orthopaedic Surgeon. This business is owned and operated by Angela Dye, a Registered Physiotherapist and services are implemented by Health Care Professionals. The Wellness Spa is an extension of the Wellness Centre and provides spa services that include skin care, facials, body wraps, manicures and pedicures. The construction of the Wellness Spa involved an investment of capital dollars (approximately $67,000) by Angela Dye to significantly enhance the area previously known as the Snack Bar, locate in the central core area on the second floor. The Pickering Sports Medicine & Wellness Centre have requested to renew this agreement. The renewal agreement allows the Pickering Sports Medicine & Wellness Centre to continue to lease space at the Pickering Recreation Complex for the operation of a Wellness Centre and Wellness Spa from January 1, 2009 to December 31, 2013. The Director, Operations & Emergency Services and Division Head, Culture & Recreation recommend that a renewal agreement be initiated with the Pickering Sports Medicine & Wellness Centre. Attachments: 1. Renewal Lease Agreement dated January 1, 2009. CORP0227-07/01 revised Report OES 06-09 Subject- Pickering Sports Medicine & Wellness Centre - Renewal Lease Agreement January 12, 2009 Page 3 Prepared By- Step h 6n--Red nolds Division Head, Culture & Recreation SR:lg Approved/Endorsed By: Ever eft ?W6tsma / / Di ctor, Operations & Emergency ervices Copy: Chief Administrative Officer Director, Corporate Services & Treasurer City Solicitor Recommended for the consideration of Pickering City"ouncil TIi6mas J.,Ouinn; DMR, C Chief Administrative Officer CORP0227-07101 revised RENEWAL LEA'?E This Renewal Lease is made as of January 1, 2009 BETWEEN: THE CORPORATION OF THE CITY OF PICKERING (the "City") - and - ANGELA DYE carrying on business as PICKERING SPORTS MEDICINE & WELLNESS CENTRE (the "Tenant") WHEREAS by a lease dated May 5, 2003 (the "Original Lease"), the Tenant leased from the City approximately 1,400 square feet (the "Wellness Centre") and 750 square feet (the "Wellness Spa Area") on the second floor of the Pickering Recreation Complex, 1867 Valley Farm Road, Pickering fore term of 4 years and 8 months ending on December 31, 2007; and WHEREAS the City and the Tenant wish to renew the Original Lease for a further term of 5 years commencing on January 1, 2009. NOW THEREFORE the City and the Tenant agree as follows: LEASE The City leases to the Tenant the Wellness Centre and the Wellness Spa Area (collectively, the "Premises") on the same terms and conditions as set out in the Original Lease save and except as set out in this renewal lease. TERM 2. The term of this renewal lease shall be 5 years commencing on January 1, 2009 and ending on December 31, 2013. 3. There shall be no further renewal option. RENT 4. For the first and second year of the term of this renewal lease, the Tenant shall pay to the City the sum of TWENTY EIGHT THOUSAND EIGHT HUNDRED DOLLARS ($28,800) (plus GST) of lawful money of Canada which sum shall be paid in advance in equal monthly installments of TWO THOUSAND FOUR HUNDRED DOLLARS ($2,400) (plus GST) each on the first day of each and every month, the first of such payments to be made on January 1, 2009. For the third, fourth and fifth year of the term of this renewal lease, the Tenant shall pay to the City the sum of THIRTY TWO THOUSAND FOUR HUNDRED DOLLARS ($32,400) (plus GST) of lawful money of Canada which sum shall be paid in advance in equal monthly installments of TWO THOUSAND SEVEN HUNDRED DOLLARS -2- if 2 { ($2,700) (plus GST) each on the first day of each and every month, the first of such payment to be made on January 1, 2011. For each successive year of this renewal lease, the annual rent shall increase by an amount equal to any increase in the Consumer Price Index for Ontario as established by Statistics Canada for the period between October and November of the previous year of the renewal lease. COMPLEX FITNESS ROOM/CARDIO ANNEX AND POOL 5. Usage by the Tenant's patients of the fitness room, cardio annex, pool or pool area shall be determined and monitored by the Landlord. Usage. by the Tenant shall be restricted by the Landlord providing to the Tenant memberships that will be used by the Tenant each time one of the Tenant's patients/clients use any of the above-noted facilities. Usage fees are covered by monthly rent. IN WITNESS WHEREOF the parties hereto have executed this renewal lease. THE CORPORATION OF THE CITY OF PICKERING PER: Mayor Dave Ryan PER: Debi A. Wilcox, City Clerk Angela Dye